Corp. Code, § 12656.5 · Chapter 17. General Provisions Relating to Dissolution
Corp. Code, § 12656.5
Text — As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
(a) After complying with the provisions of Section 12653, and except as otherwise provided in Section 12655, upon dissolution of a worker cooperative the majority of the unallocated capital account shall be distributed to members on the basis of any of the following, as specified in the articles of incorporation or bylaws of the cooperative:
(1) Patronage.
(2) Capital contributions.
(3) A combination of patronage and capital contributions.
(b) A worker cooperative is authorized to include patronage provided by past and current members in its distribution of the unallocated capital account.
(c) Subdivision (a) shall not apply to any amounts in the indivisible reserve account. Any amount in the indivisible reserve account shall, upon dissolution, be allocated to a cooperative development organization designated in the articles of incorporation or the bylaws.
Notes and commentary — not statutory text
History
Added by Stats. 2015, Ch. 192, Sec. 25. (AB 816) Effective January 1, 2016.
Source of truth
- Edition
- As published in the Legislative Counsel's database, tables dated October 18, 2026 (pubinfo_2025.zip)
- Official file
- https://leginfo.legislature.ca.gov/faces/codes_displaySection.xhtml?lawCode=CORP§ionNum=12656.5.
- Text hash
- sha256 5cdf9efae48e44a0623ecbcf98e8ae5b04be519e38901e59835216876dbf70d2
- Composed by
- compose_ca.py 2026-10-22: the Legislative Counsel's CAML content files read by a tokenizer (caml_readers.reader_a); an independent xml.etree reading (caml_readers.reader_b) agrees on every section
This section cites
Provisions in this library that the text above cites, as it prints each citation. A range cited as “ss. 61.13-61.16” links its first and last provisions.
Cited by 1 provision
Provisions in this library whose text cites Corp. Code, § 12656.5. Each shows the citation as that text prints it.
Corporations Code
Procedural information only. Not legal advice and not a substitute for the advice of an attorney. Confirm the current text with the official publisher before relying on it.